Cross-Border Political Donations and Pareto-Efficient Tariffs

dc.creatorEndoh, Masahiro
dc.date2017-04-01T15:28:27Z
dc.date.accessioned2026-07-09T04:01:08Z
dc.descriptionThis paper examines the effects of lobbying activities across international borders, on determining each country's import tariff in a multi-principal, multi-agent, menu-auction model. Cross-border political donations could promote international policy cooperation because of two of their distinctive characteristics. First, special interest groups use cross-border donations as tools to wield their influence on ruling parties of other countries directly, which promotes efficiency of policy formation. Second, for ruling parties of countries, cross-border donations make them take into account the impact of their policy on other countries, which makes them more sensitive to other countries' welfare and, therefore, more cooperative with others. When ruling parties estimate the worth of political contributions from national special interest groups and from foreign lobbying groups with the same weight, Pareto-efficient tariffs are attained at which world welfare is maximized.
dc.identifierdoi:10.22004/ag.econ.28397
dc.identifierhttps://ageconsearch.umn.edu/record/28397/files/dp050915.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/28397
dc.identifier.urihttp://hdl.handle.net/123456789/543571
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/28397
dc.titleCross-Border Political Donations and Pareto-Efficient Tariffs
dc.typeText

Archivos